BCRH - Blue Capital Re

[walkie518]

Blue Cap was a sub of Endurance Specialty before Endurance was sold to Sompo, but Blue Cap is still out there

 

the firm is a collateralized reinsurer, aka publicly traded ILS investment firm

 

market cap is fairly small ($60m) and avg volume is fairly low...certainly one must be wary of entry and exit pricing

 

provided one trusts mgmt's equity basis, the stock trading at $6.85 implies the firm trades at 48% discount to book

 

distributions are hard to follow b/c they will move with the ILS market, though BCRH has paid out 30 cents/quarter since 2014...

 

$1.20/$6.85 = 17.5% yield should payments persist

 

I will have to pay more attention to the filings and calls, but before I start digging, I was wondering if anyone knows the company and/or could give some insight?

 

was refreshed this am when I saw an article from Artemis cross my desk:

http://www.artemis.bm/blog/2019/01/17/blue-capital-re-raises-q4-catastrophe-loss-estimate-to-30m/?utm_source=rss&utm_medium=rss&utm_campaign=blue-capital-re-raises-q4-catastrophe-loss-estimate-to-30m

[Mondegreen]

For reference:

 

https://www.valueinvestorsclub.com/idea/Blue_Capital_Reinsurance_Holdings_Ltd._/8153623646

[walkie518]

For reference:

 

https://www.valueinvestorsclub.com/idea/Blue_Capital_Reinsurance_Holdings_Ltd._/8153623646

interesting...looks like stock trades under target, but target is a deterioration of book to $7/sh where mgmt has guided to $10/sh, or where the stock was trading when the short thesis was published

 

looks like the writer was correct in terms of price action but incorrect in terms of equity losses...maybe best thing would be to wait for final numbers from CA wildfires?